What Is the Harami Pattern?
The Harami pattern is a two-candle reversal formation found in candlestick analysis. It appears when a large candle is followed by a smaller candle positioned entirely within the previous candle’s body. This structure signals that momentum in the current trend is weakening and a potential reversal may be developing.
There are two main variations:
- Bullish Harami – potential shift from bearish to bullish
- Bearish Harami – potential shift from bullish to bearish
The term “Harami” means “pregnant” in Japanese, referencing the smaller candle contained inside the larger one.
How the Harami Pattern Works
A Harami forms after a strong trending move. The first candle represents dominance from buyers or sellers. The second, smaller candle reflects hesitation, loss of momentum, and possible shift in sentiment.
Example: Bullish Harami (after a downtrend)
- A large bearish candle shows strong selling
- A smaller bullish candle forms inside the previous body
- Signals that selling pressure is slowing
Example: Bearish Harami (after an uptrend)
- A large bullish candle shows strong buying
- A smaller bearish candle forms within it
- Suggests buying pressure is losing strength
The pattern highlights a contraction in volatility, often seen before reversals.
How Traders Use the Harami Pattern in Practice
Traders rarely trade the Harami alone. It is usually paired with additional tools for confirmation.
Common uses:
- Spot potential reversals at key support and resistance levels
- Combine with trendlines or moving averages to validate direction
- Look for Harami patterns at the end of extended moves
- Use higher timeframes to identify major turning points
A Harami becomes more reliable when:
- It forms at a strong technical zone
- It aligns with overall market structure
- It appears after a clear trend with visible exhaustion
Why the Harami Pattern Matters
The Harami pattern is valuable because it provides an early indication that the current trend may be weakening.
- Helps identify early reversal opportunities
- Reduces risk of entering late into trending markets
- Works across all major asset classes — forex, indices, commodities, crypto
- Simple to recognize and easy for beginners to learn
Its combination of clarity and practicality is why it remains one of the most widely used candlestick signals in technical analysis.